Wednesday, August 20, 2014

Traders react peeved: Infineon wants to take over U.S. rival – n-tv.de NEWS

Now it is out: The German chipmaker Infineon makes an offer for the U.S. semiconductor manufacturer International Rectifier. Around $ 3 billion is the Bavarian company worth the purchase. The Infineon share price can however by.

Charts

After years of restraint, the Bavarian chip company Infineon trumps with a billion takeover. The company wants the U.S. rival International Rectifier assume for 3 billion dollars (2.26 billion euros), as the DAX company announced. “The perfect combination of complementary products, technological and innovative excellence and the sales strength is great potential prospects,” praised CEO Reinhard Ploss the transaction.

Per share the Rectifier’s shareholders will receive $ 40. The premium to the previous closing price falls of around 50 percent, even for the high-tech industry vigorously from. For the purchase price of Infineon takes on new debt over 1.5 billion euros, the rest comes from cash, Germany’s largest semiconductor company. The supervisory boards of both companies have already approved the acquisition, it said in the statement.

acquisition will pay off in the first year

The purchase agreement has already been signed. Now, however, must still be approved by the competent supervisory authorities of the transaction. The shareholders of International Rectifier have to rubber-stamp the deal.

Depending on the approval of the regulatory authorities will bring the transaction by the end of this or beginning of next year in the bag Infineon. Already in the year of completion of the transaction, the acquisition will have a positive effect on the pro-forma earnings per Infineon share.

Infineon currently on the rise

For years about possible acquisitions of Infineon speculated. The Group had always stressed that one could imagine acquisitions certainly, if the purchase price, the company and its products would fit the strategy of Infineon. CEO Reinhard Ploss had the face of good business recently the forecast for the current fiscal year 2013/14 is raised a little.

More on the topic

Infineon benefits from a strong business with the automotive industry, but also from the business with renewable energy production, transmission and conversion, electric industrial motors and household appliances prove. This year, sales are expected to climb to more than 4 billion euros.

The offer was announced after trading in Germany. During the day there had been takeover gossip but not arrived at the dealership., The price of Infineon shares fell 2.4 percent to 8.49 euros from